India has unveiled a $6.5 billion plan to boost smartphone manufacturing and domestic semiconductor production, aiming to expand beyond Apple’s iPhone assembly operations and attract more electronics supply chain activities.

The initiative, called the Mobile Phone Manufacturing Scheme, offers incentives ranging from 2.25% to 5%, with an additional 1.5% for sourcing components in India. The government has also committed $13.3 billion for local semiconductor manufacturing and scrapped import duties on some phone parts.

This push follows a decade of emerging as a key smartphone manufacturing hub, drawing production from Apple, Samsung, Xiaomi and others. However, China remains dominant, accounting for 63% of global smartphone production in 2025, compared to India's 18%, according to Counterpoint Research.

India aims to capture more value within the smartphone industry by fostering homegrown brands and encouraging local design and research. The country hopes to produce $405 billion worth of mobile phones over the next five years, creating about 60,000 direct jobs in the process.